First Quarter

First quarter

2021 2 First quarter 2021

About Scatec

Scatec is a leading renewable power producer, delivering affordable and clean energy worldwide. As a long- term player, Scatec develops, builds, owns and operates solar, wind and hydro power plants and storage solutions. Scatec has more than 3.5 GW in operation and under construction on four continents and more than 500 employees. The company is targeting 15 GW capacity in operation or under construction by the end of 2025. Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SCATC’. To learn more, visit www.scatec.com.

Asset portfolio 1) Segment overview

Capacity Economic Development & Construction Technology MW interest 2) The Development & Construction segment derives its In operation revenues from the sale of development rights and con- Philippines 642 50% struction services delivered to power plant companies Laos 525 20% where Scatec has economic interests. South Africa 448 45% Egypt 380 51% Power Production Uganda 255 28% The power plants produce electricity for sale primarily Malaysia 244 100% under long term power purchase agreements (PPAs), Brazil 162 44% with state owned utilities or corporate off-takers, or Ukraine 133 73% under government-based feed-in tariff schemes. The Honduras 95 51% Jordan 43 62% average remaining PPA duration for power plants in Mozambique 40 53% operation is 18 years. The electricity produced from Vietnam 39 100% the power plants in the Philippines is sold on bilateral Czech Republic 20 100% contracts and the spot market, under a renewable Rwanda 9 54% operating license. Also, ancillary services make up a Total 3,035 48% significant part of the total revenues in the Philippines.

Under construction Services Ukraine 203 100% The Services segment comprises Operations & Pakistan 150 75% Maintenance (O&M) and Asset Management services Argentina 117 50% provided to power plants where Scatec has economic Mexico 9 100% Total 479 78% interests. O&M revenues are generated on the basis of fixed service fees with additional profit-sharing arrange- Projects in backlog ments. Asset Management services typically include Tunisia 360 55% financial reporting to sponsors and lenders, regulatory Brazil 101 40% compliance, environmental and social management, as Ukraine 65 65% well as contract management on behalf of the power Bangladesh 62 65% plant companies. Mali 33 64% Lesotho 25 48% Corporate Total 646 55% Corporate consists of activities of corporate services, management and group finance. Grand total 4,160 53%

Projects in pipeline 11,098

1) Asset portfolio as per reporting date. 2) Scatec’s share of the total estimated economic return from its subsidiaries. For projects under development the economic interest may be subject to change. Scatec ASA 3

Q1’21 – Strong growth and solid cash flow generation

• Acquistion of SN Power completed Proportionate revenues and EBITDA – the hydro assets contributing to strong growth NOK million

• 1) Power production of 854 (349) GWh and EBITDA of NOK 636 (346) million. • Power Production cash flow to equity NOK 681 (107) million including refinancing proceeds • Start construction of 150 MW solar plant in Pakistan • 2025 growth target announced – 15 GW capacity and investments of NOK 100 billion

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Key figures

NOK million Q1 2021 Q4 2020 Q1 2020 FY 2020

Proportionate Financials 2) Revenues and other income 1,010 497 866 2,844 Power Production 924 402 391 1,708 Services 56 45 52 232 Development & Construction 24 46 414 873 Corporate 6 5 8 33 EBITDA 2) 636 223 346 1,306 Power Production 704 320 331 1,404 Services 17 10 16 82 Development & Construction -60 -38 15 -28 Corporate -25 -69 -16 -153 Operating profit (EBIT) 406 63 206 690 Net interest- bearing debt 2) 13,674 1,851 8,139 1,851

Scatec proportionate share of cash flow to equity2) 571 -22 107 324

Power Production (GWh) 854 407 349 1,602 Power Production (GWh) 100% 3) 2,147 756 623 2,911

Consolidated Financials Revenues and other income 831 679 625 2,754 EBITDA 2) 631 448 503 2,069 Operating profit (EBIT) 444 244 328 1,292 Profit/(loss) 42 -561 299 -368 Net interest- bearing debt 2) 14,744 5,223 12,038 5,223 Basic earnings per share 0.11 -4.10 1.87 -3.51

1) Amounts from same period last year in brackets 2) See Alternative Performance Measures appendix for definition 3) Production volume on a 100% basis from all entities, including JV companies. 4 First quarter 2021

Group – Proportionate financials

Q1 Q4 Q1 FY The Group’s revenues increased compared to the same NOK million 2021 2020 2020 2020 quarter last year, from inclusion of the SN Power assets in January 2021 combined with new solar plants in Revenues and other income 1,010 497 866 2,844 operations, partly offset by lower construction activity. Gross Profit 907 457 497 2,080 Operating expenses -271 -234 -151 -775 The increase in operating expenses and depreciation EBITDA 1) 636 223 346 1,306 compared with same quarter last year is mainly driven EBITDA margin 1) 63% 45% 40% 46% by the new power plants in the portfolio. D&A and impairment -230 -160 -140 -615 EBIT 406 63 206 690 Cash flow to equity1) 571 -22 107 324 With a larger portfolio of power plants in operation, both revenues and EBITDA increased in the Power Production segment, while decreasing in the Development & Proportionate revenues and EBITDA Construction segment due to low construction activity in NOK million the quarter. This segment mix resulted in a higher EBITDA margin for the Group compared with the previous quarter.

Cash flow to equity increased compared to the same quarter last year, primarily explained by the factors above in addition to NOK 397 million from refinancing of assets in

the Philippines. See page 10 for further comments on cash flow to equity.

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1) See Alternative Performance Measures appendix for definition.

Power Production – Proportionate financials

Q1 Q4 Q1 FY The capacity increased by 1,461 MW (including the SN Power NOK million 2021 2020 2020 2020 assets) from year end 2020, and increased production is the main reason for higher revenues and EBITDA. Cash flow to Revenues and other income 924 402 391 1,708 equity also includes NOK 397 million that stems from debt Gross profit 844 402 391 1,708 refinancing of assets in the Philippines. Operating expenses -140 -81 -60 -304 EBITDA 1) 704 320 331 1,404 Power production reached 854 GWh in the first quarter EBITDA margin 1) 76% 80% 85% 82% compared to 349 GWh in the same quarter last year, while D&A and impairment -221 -149 -125 -566 EBIT 483 171 206 838 revenues and EBITDA increased by NOK 532 million and Cash flow to equity1) 681 53 105 427 NOK 373 million respectively.

The financial performance of the hydropower plants was Proportionate revenues and EBITDA strong in the quarter with production above median expec- NOK million GWh tiation, mainly due to favorable hydrology and higher power prices in the Philippines. Revenues and EBITDA from solar plants remained stable compared to the same quarter last year, somewhat offset by increased asset ownership costs. See page 15 for a specification of financial performance for

eee A e ct each country in the portfolio.

1) See Alternative Performance Measures appendix for definition. Scatec ASA 5

Services – Proportionate financials

Q1 Q4 Q1 FY The revenues in the Services segment increased from the NOK million 2021 2020 2020 2020 previous quarter due to the inclusion of revenues related to services rendered to the hydropower plant in Laos. Revenues and other income 56 45 52 232 Operating expenses -39 -35 -36 -150 Operating expenses in the segment mainly constitute fixed EBITDA 1) 17 10 16 82 expenses such as personnel and recurring maintenance EBITDA margin 1) 30% 22% 31% 35% cost reflecting fixed maintenance schedules. As such the D&A and impairment -1 -1 -1 -3 operating expenses are broadly in line with the previous EBIT 16 9 15 79 Cash flow to equity1) 14 8 13 65 quarter.

Proportionate revenues and EBITDA NOK million

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1) See Alternative Performance Measures appendix for definition.

Development & Construction (D&C) – Proportionate financials

Q1 Q4 Q1 FY In February 2021, Scatec achieved financial close for the 150 NOK million 2021 2020 2020 2020 MW Sukkur project in Pakistan and development revenues have been recorded in the first quarter. Revenues and other income 24 46 414 873 Gross Profit - 6 46 109 The total construction activity and revenues in the quarter Gross Margin 1) 1% 12% 11% 12% was low compared with the same quarter last year as only Operating expenses -60 -43 -31 -137 minor activities are remaining in Argentina and Ukraine. EBITDA 1) -60 -38 15 -28 These plants are estimated to be completed in the second D&A and impairment -2 -5 -10 -26 EBIT -62 -43 5 -54 quarter. Cash flow to equity1) -51 -27 13 -15 The increase in operating expenses reflects the new scope of pursuing hydropower project development after the Proportionate revenues and EBITDA acquisition of SN Power. Operating expenses is comprised NOK million of approximately NOK 49 million for early stage project development and NOK 11 million related to the construction business. In addition project development spending (including amounts capitalised) reached NOK 60 million in the quarter. The company continued to mature a wide range of projects, resulting in 13% pipeline growth, see page 13 for further details

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1) See Alternative Performance Measures appendix for definition. 6 First quarter 2021

Corporate – Proportionate financials

Q1 Q4 Q1 FY Revenues in the corporate segment are earned through NOK million 2021 2020 2020 2020 corporate services rendered to the Groups subsidiaries.

Revenues and other income 6 5 8 33 Operating expenses increased by NOK 7 million compared Operating expenses -31 -74 -24 -186 with the same quarter last year, mainly related to the inte- EBITDA 1) -25 -69 -16 -153 gration of SN Power and a strengthened corporate function D&A and impairment -6 -5 -5 -20 to support the Company’s growth targets. EBIT -31 -74 -21 -173 Cash flow to equity1) -72 -55 -24 -153

1) See Alternative Performance Measures appendix for definition.

Short term guidance

Scatec updated its financial and operational targets at its Services Capital Markets Update 23 March 2021. Refer to the Revenues in the Services segment are expected to reach complete presentation material for further details. approximately NOK 280 million in 2021 with an EBITDA margin of 30-35%. Power Production The estimated production for second quarter and full Development & Construction year 2021 is based on production from the portfolio with a D&C revenues and margins are dependent on progress on capacity of 3,035 GW in operation at the end of first quarter development and construction projects. 2021. At the end of first quarter the remaining, not booked, GWh Q1 2021 Q2 2021E 2021E construction contract value was about NOK 513 million.

Proportionate 854 815 – 865 3,500 – 3,700 100% basis 2,147 2,050 – 2,150 9,000 – 9,400 D&C revenues will further increase when new projects move into construction.

Corporate Full year 2021 EBITDA for Corporate is expected to be NOK -110 million.

COVID-19 The transaction is structured so that the economic risk Scatec has not experienced any material effects related to of the acquired companies was transferred to Scatec 1 COVID-19 on its operations in first quarter 2021. January 2021, and SN Power is consequently included in the proportionate segment financials from 1 January 2021.

Acquistion of SN Power In the groups consolidated IFRS financials the date of In January 2021, Scatec ASA completed the acquisition of inclusion is 29 January 2021, which is the date of comple- 100% of the shares of SN Power AS, a leading hydropower tion of the transactions, defined by IFRS as the point in developer and Independent Power Producer (IPP), from time Scatec obtained control over the project companies. Norfund for a total consideration of USD 1,200 million A full reconciliation between the proportionate and the (NOK 10,371 million). IFRS financials including the effect of January 2021 is provided in Note 2 Operating Segments. Scatec ASA 7

See note 1 regarding basis for preparation and note 8 Outlook Business combination for further information about the Despite the pandemic, global investment in low-car- acquisition and the fair value of the identifiable assets and bon energy transition reached USD 500 billion in 2020 liabilities of SN Power and the Purchase Price Allocation. according to Bloomberg New Energy Finance (BNEF), a 9% increase from previous year. This level is expected to remain in 2021. ESG performance Sustainability and Climate Reports BNEF expects global solar new build to accelerate, seeing Scatec’s Annual Sustainability Report was published at new installations between 160-209 GW in 2021, up from the end of first quarter 2021. The report summarises key an estimated 141 GW in 2020. For wind, new installations performance, results and targets related to the Company’s reached more than 70 GW for the first time in 2020 with most material ESG risks and opportunities. The full report further growth to 84 GW expected in 2021. The global can be downloaded under “Sustainability Reports”. energy storage market also set new records in 2020 with 5.3 GW in new capacity, expected to reach 9.7 GW in 2021. The Company also published its first TCFD (Task Force on Global hydropower new-build reached approximately Climate-Related Financial Disclosure) Report at end of first 18 GW in 2020, and the International Energy Agency fore- quarter, 2021. TCFD encourages standardised reporting of casts an increase of 28 GW in 2021. financially material climate-related risks and opportunities. The reporting guidelines are grouped into four areas of Long term, all renewables are expected to see massive disclosure that represent core elements of how organisa- growth, with solar, hydro, wind and storage covering 73% of tions operate: governance, strategy, risk management, and global energy needs by 2050. metrics and targets. The TCFD report is available under “Climate Reporting”. In March 2021, Scatec announced a NOK 100 billion investment plan towards 2025 and updated its financial and All ESG-related reports, policies and other documentation operational targets. The current 4.5 GW capacity target for are published under ESG resources on the Company’s 2021 (excluding new hydro capacity) was reconfirmed and website. a new target of 15 GW by the end of 2025 was announced. The business plan is supported by Scatec’s track record ESG Committee of strong growth and a solid project pipeline across solar, In fourth quarter 2020, Scatec established an ESG wind, hydro and storage in high-growth markets globally. Committee consisting of three Board members, elected for The 15 GW target implies 12 GW of new capacity, that will a period of two years. require an estimated NOK 100 billion in investments, of which NOK 15-20 billion will be funded by Scatec equity. The purpose of the ESG Committee is to guide and Solid long term cash flows from operating power plants support the Company’s work and commitment towards and margins from development and construction of new Environmental, Social and Governance matters. For further plants are expected to fund a major part of Scatec’s equity information about the ESG Committee, visit Board of investments. Directors - Scatec

Bi-annual ESG reporting From second quarter 2021, Scatec will start reporting on a set of environmental, social and governance indicators on a bi-annual basis. The reporting will cover results and performance across material ESG topics. 8 First quarter 2021

Consolidated statement of profit and loss

Profit and loss Net financial items

Q1 Q4 Q1 FY Q1 Q4 Q1 FY NOK million 2021 2020 2020 2020 NOK million 2021 2020 2020 2020

Revenues 693 688 630 2,771 Financial income 22 18 12 57 Net income/(loss) from JVs and Financial expenses -357 -363 -250 -1,189 associated 138 -8 -5 -16 Foreign exchange gains/(loss) -9 -480 320 -398 EBITDA 631 448 503 2,069 Net financial items -344 -825 82 -1,530 Operating profit (EBIT) 444 244 328 1,292 Net financial items -344 -825 82 -1,530 Profit before income tax 100 -581 410 -238 Financial expenses in the first quarter mainly consist of Profit/(loss) for the period 42 -561 299 -368 interest expenses, which comprise of primarily interest Profit/(loss) to Scatec 18 -558 235 -478 on non-recourse financing of NOK 242 million (209), and Profit/(loss) to non-controlling corporate funding of NOK 82 million (17). See note 4 and 5 interests 24 -3 64 110 for further information on financing.

Revenues The quarter’s net foreign currency loss decreased from Revenues from power sales were up 10% compared to NOK 320 million in the first quarter of 2020 to NOK -9 mil- the same quarter last year. The increase in revenues lion in the first quarter of 2021. The change is primarily is explained by the commercial operation of new solar explained by change of functional currency in Scatec ASA parks at Upington (South Africa), Boguslav (Ukraine) and from NOK to USD from 1 January 2021, which has reduced Kamianka (Ukraine), and the acquisition of the Dam Nai the currency exposure of Scatec ASA’s shareholder loans Wind power plant in Vietnam. to project companies which are provided in the respective projects’ currencies. The increase in net income from joint venture investments and associated companies was NOK 143 million compared Profit before tax and net profit to same quarter last year. The increase relates to the share The Group recognised a tax expense of NOK 59 million (111) of net income from the joint ventures in Philippines (50% in the first quarter, corresponding to an effective tax rate of ownership), Laos (20% ownership) and Uganda (28.3% own- 59% (27%). The difference between the actual tax expense ership), all part of the SN Power acquisition. Net income for for the quarter and a calculated tax expense based on February and March 2021 from the joint ventures acquired the Norwegian tax rate of 22% is primarily explained by are included in the consolidated figures for the first quarter withholding taxes paid on dividends received from sub- 2021. See note 9 for further description and break-down sidiaries in addition to currency effects in countries with per country. a tax reporting currency that deviates from the functional currency. For further details, refer to note 6. Operating profit Following the enlarged portfolio from the acquisition of Non-controlling interests (NCI) represent financial investors SN Power, the EBITDA increased 26% compared to the in the power plants. The allocation of profits between NCI same quarter last year. The growth in operating expenses and Scatec is impacted by the fact that NCI only have compared to first quarter last year is also explained by the shareholdings in the power plants, while Scatec also increased asset base in operation. carries the cost of project development, construction, operation & maintenance and corporate functions. Consolidated operating expenses amounted to NOK 200 million (123) in the first quarter. This consists Impact of foreign currency movements of approximately NOK 119 million (72) for operation of in the quarter existing power plants, NOK 46 million (22) for early stage During the first quarter of 2021 NOK appreciated against development of new projects, NOK 11 million (8) related to all relevant currencies compared to the average rates construction and NOK 23 million (21) of corporate expenses for the forth quarter of 2020. On a net basis this nega- (excluding eliminated intersegment charges). tively affected consolidated revenues by approximately NOK 25 million, while the net impact on net profit in the quarter was negative NOK 2 million. Scatec ASA 9

Following the movements in currencies in the first quarter, Scatec has not hedged the currency exposure on the the Group has recognised a foreign currency translation expected cash distributions from the power plant loss of NOK 64 million (343) in other comprehensive companies. income related to the conversion of the subsidiaries’ statements of financial position from the respective functional currencies to the Group’s reporting currency.

Consolidated statement of financial position

Assets Equity and liabilities

NOK million Q1 2021 Q4 2020 NOK million Q1 2021 Q4 2020

Property, plant and equipment 16,316 16,086 Equity 9,637 9,467 Investments in JVs and Non-current non-recourse project associated companies 9,750 612 financing 10,533 11,350 Other non-current assets 1,118 891 Corporate financing 7,114 - Total non-current assets 27,184 17,590 Other non-current liabilities 2,112 2,351 Other current assets 1,586 1,286 Total non-current liabilities 19,760 13,701 Cash and cash equivalents 4,783 7,788 Corporate financing - 748 Total current assets 6,369 9,074 Current non-recourse project Total assets 33,553 26,663 financing 1,880 913 Other current liabilities 2,276 1,834 Total current liabilities 4,156 3,495 The 54% net increase of non-current assets in the first Total liabilities 23,916 17,196 quarter is mainly driven by the acquisition of SN Power and Total equity and liabilities 33,553 26,663 increase in investments in joint ventures and associated Book equity ratio 28.7% 35.5% companies. See note 9 for an overview of investments in joint ventures and associated companies and split per Total equity increased by NOK 170 million compared to country. fourth quarter 2020, driven by the profit and other comprehensive income in the period. The decreased book equity Other current assets increased by 23% compared to fourth ratio is explained by the effect above, offset by increased quarter 2020, mainly driven by working capital changes total balance sheet value related to the acquisition of related to construction projects. The cash balance has SN Power. The net increase in current and non-current decreased with NOK 3,005 million since fourth quarter non-recourse project finance debt of NOK 150 million from 2020, primarily following the acquisition of SN Power. In the fourth quarter 2020 is mainly related to the SN Power addition, the Group had NOK 1,580 million in available acquisition and the fully consolidated entity Dam Nai Wind. undrawn credit facilities at the end of the first quarter. In addition has NOK 921 million of the non-current non-re- See note 5 for a detailed breakdown of cash balances as course debt in Ukraine been presented as current in the well as an overview of movement of cash at the Recourse statement of financial postition since the projects failed to Group level. meet certain loan covenants measured at the end of the quarter. Refer to note 4 for further details. In the consolidated statement of financial position, the power plant assets are valued at the Group’s cost, reflect- Corporate financing increased with NOK 6,366 million from ing elimination of gross margins generated through the the fourth quarter 2020. The increase mainly relates to the project development and construction phase. At the same issue of a senior unsecured green bond with maturity in time, the ring-fenced non-recourse debt held in power August 2025 of EUR 250 million, redemption of the NOK plant assets is consolidated at full value, which reduce the 750 million senior unsecured green bond issued in 2017, consolidated book equity ratio. and to the financing of the acquisition of SN Power in January 2021 with term loan of USD 150 million and vendor note of USD 200 million. See note 5 for further details. 10 First quarter 2021

Consolidated cash flow The cash flow to equity in the D&C segment is impacted by low construction activtiy and limited revenues. Net cash flow from consolidated operating activities amounted to NOK 239 million (729) in the first quarter of The cash flow to equity for the Corporate segment primarily 2021, compared to the EBITDA of NOK 631 million. The dif- relates to operating expenses and interest expenses on ference is primarily explained by changes in other current corporate funding. liabilities. In the first quarter of 2021, the power plant companies Net cash flow from consolidated investing activities was distributed a total of NOK 723 million to Scatec ASA. NOK -7,624 million (-723), driven by the acquisition of SN Power. Risk and forward-looking statements Net cash flow from financing activities was NOK 4,386 million (213), driven primarily by the loan proceeds to fund Scatec has extensive policies and procedures in place the transaction of SN Power. as part of its operating system to actively manage risks related to the various parts of the Company’s operations. See also note 5 for a detailed cash overview. Key policies are reviewed and approved by the Board of Directors annually. The regular follow up of these policies is carried out by Scatec’s Management Team, Finance, Legal Proportionate cash flow to equity and other relevant functions. For further information refer to the 2020 Annual Report (the Board of Directors’ report Scatec’s “proportionate share of cash flow to equity”1) , is and note 5). an alternative performance measure that seeks to estimate the Group’s ability to generate funds for equity Forward-looking statements reflect current views about investments in new power plant projects and/or for future events and are, by their nature, subject to significant shareholder dividends over time. risk and uncertainties because they relate to events and depend on circumstances that will occur in the future. Q1 Q4 Q1 FY NOK million 2021 2020 2020 2020 Although Scatec believes that these assumptions were reasonable when made, the Group cannot assure that the future results, level of activity or performances will meet Power Production 681 53 105 427 Services 14 8 13 65 these expectations. Development & Construction -51 -27 13 -15 Corporate -72 -55 -24 -153 Total 571 -22 107 324

The cash flow to equity in the Power Production segment have increased compared to the same quarter last year, primarily explained by new power plants included following the acquisition of SN Power. Cash flow to equity includes NOK 397 million that stems from debt refinancing of assets in the Philippines. The refinancing is part of a long-term financing strategy for the Philippines that secures an attractive average leverage, and was successfully con- cluded in the local banking market at favorable terms.

The cash flow to equity in Services is stable compared to same quarter last year.

1) See Alternative Performance Measures appendix for definition. Scatec ASA 11

Project overview

Q1 2021 Q4 2020 Capacity 1) Capacity Project stage (MW) (MW)

In operation 3,035 1,574 Under construction 479 320 Project backlog 2) 646 670 Project pipeline 2) 11,098 9,790 Total 15,258 12,354

Total annual production and revenues from the 4,160 MW in operation, under construction and in backlog is expected to reach about 11,700 GWh (on 100% basis) and NOK 9,700 million (on 100% basis) based on 10-25-year Power Purchase Agreements (PPAs).

Projects under construction and backlog 1)

Project backlog is defined as projects with a secure off-take agreement and assessed to have more than 90% likelihood of reaching financial close and subsequent realisation.

The table below shows the projects under construction and in backlog with details on capital expenditure and annual production. For extensive information about the projects under construction and in backlog, refer to our website www.scatec.com/asset-portfolio-overview/.

Annual Scatec CAPEX production economic Location Capacity (MW) Currency (100%, million) (100%, GWH) Debt leverage interest

Under construction Ukraine portfolio 203 EUR 177 248 65% 100% Sukkur, Pakistan 150 USD 100 300 75% 75% Guanizuil, Argentina 117 USD 103 310 60% 50% Torex Gold, Mexico ³⁾ 9 USD N/A N/A N/A 100% Total under construction 479 NOK 4) 3,581 858 78%

Backlog Tunisia 360 EUR 240 900 70% 55% 4) Brazil 101 BRL 356 220 60% 40% Ukraine 65 EUR 74 90 70% 65% 5) Bangladesh 62 USD 68 85 70% 65% 5) Mali 33 EUR 50 60 75% 64% 5) Lesotho 25 ZAR 430 55 70% 48% Total backlog 646 NOK 4) 4,751 1,410 55%

Total 1,125 NOK 4) 8,333 2,275 65%

1) Status per reporting date. 2) See Other Definitions for definition. 3) Lease contract through Release by Scatec, hence other project data N/A. 4) All exchange rates to NOK are as of 31 March 2021. 5) Expected economic interest at financial close of project. 12 First quarter 2021

Under construction

Capacity Tunisia, 360 MW Project (MW) In December 2019, Scatec was awarded three solar power plant projects in Tunisia totalling 360 MW. The three Sukkur, Pakistan 150 projects will hold 20 years of PPAs with Société Tunisienne Progressovka, Ukraine 148 de l’Electricité et du Gaz (STEG). Guanizuil, Argentina 117 Chigirin, Ukraine 55 Scatec will be the lead equity investor in the projects. Torex Gold, Mexico 9 Total 479 The company will also be the Engineering, Procurement and Construction (EPC) provider and provide Operation & Maintenance as well as Asset Management services to the Scatec’s project portfolio under construction is close to power plants. completion. The Company maintains its estimate for power plants under construction in Argentina and Ukraine to San Pedro and Paulo (SPP), 101 MW reach commercial operation dates in the second quarter The SPP project is being developed in partnership with 2021. The 150 MW Sukkur project started construction in Kroma Energia and Equinor, the same partners that April 2021 with expected commercial operation in 2022. realised the Apodi project. The project is located in Flores, Pernambuco and financing will be provided by Banco In Ukraine, the government adopted a new law in July 2020 do Nordeste (BNB). The project has secured off-take of to revise the previous Feed-in Tariffs (FiTs). The new FiTs about 75% of energy generated with ANEEL and Engie. The have not been accepted by Scatec or other IPPs and Scatec remaining energy will be contracted on short term con- is in the process of assessing future actions related to the tracts in the market. new FiTs. Scatec will have a 40% ownership stake in the project. 8.5 MW lease agreement with Torex Gold (Release) The Engineering, Procurement and Construction (EPC) and In April 2021, Release by Scatec entered into a lease Operation & Maintenance as well as Asset Management agreement with mining company Torex Gold for a 8.5 MW service will be provided by Scatec and Equinor in solar plant for two projects in Mexico. The initial contract partnership. term is ten years with a possibility of extension and options for buy-out starting after the expiry of year 3. The solar Lesotho, 25 MW plant can at any time be expanded, including adding battery The “Neo 1” solar PV project will be Lesotho’s first pub- storage and it can also be moved to a new location if lic-private, utility-scale solar plant. The project has a total needed. The solar plant is estimated to be completed in estimated capex of ZAR 430 million and is owned by fourth quarter 2021 subject to permitting approvals. Scatec, Norfund, One Power Lesotho, the Lesotho Pension Fund and Izuba Energy.

Backlog Scatec will be the lead equity investor in the project and also be the Engineering, Procurement and Construction The 101 MW SPP project in Brazil and the 25 MW Lesotho (EPC) provider and provide Operation & Maintenance as project has been included in backlog since the fourth well as Asset Management services to the power plant. The quarter report, resulting in a project backlog of 646 MW. electricity will be sold to the Lesotho Electricity Company (LEC) through a 25-year Power Purchase Agreement (PPA). The COVID-19 situation is in general impacting the markets where Scatec develops projects. There are still restrictions Other backlog on movement and international travel continues to be very In addition to the above projects, Scatec’s backlog also limited. This is expected to impact project development as includes) Ukraine (65 MW), Bangladesh (62 MW) and Mali certain activities requires physical presence. The progress (33 MW). Additional information is available on that can be made for projects in backlog and pipeline is www.scatec.com. therefore impacted and delays in maturing some of these projects are expected. Scatec ASA 13

Pipeline

Mendubim project. The MoU provides a framework to Q1 2021 Q4 2020 Capacity Capacity 1) realise the project on a site already secured in Rio Grande Location (MW) (MW) do Norte in Brazil. The MoU contemplates joint ownership

Latin America 1,325 1,100 and development of the project by the three parties and Africa and the Middle East 4,693 3,862 offtake of part of the production by Hydro. Europe & Central/South Asia 1,330 1,280 Southeast Asia 3,750 3,548 Project opportunities in hydropower in Latin America are Total pipeline 11,098 9,790 being evaluated and pursued mainly in Peru and Colombia.

In addition to the projects in backlog Scatec holds a solid Africa and the Middle East (4,693 MW) pipeline of projects totaling 11,098 MW across several tech- In South Africa, Scatec holds solar and wind sites rep- nologies. The pipeline has increased from 9,790 MW at the resenting more than 1.5 GW ready to be bid, and the fourth quarter reporting to 11,098 MW at the first quarter Company is in the process of securing additional projects reporting date. The increase in the pipeline is mainly com- for upcoming tenders rounds. ing from new projects in Africa, Asia and the Middle East. In fourth quarter 2020, Scatec submitted proposals in the

Solution Capacity (MW) Share in % Risk Mitigation Power Procurement Programme in South Africa. Scatec is currently providing clarifications to the IPP Solar 4,686 42% Office in South Africa regarding these proposals and are Wind 1,870 17% expecting a decision in the near future. Hydro 2,516 23% Hybrid solutions 1,726 15% Further, the new integrated Resource Plan has been Release 300 3% launched and based on this, a new tender (“round 5”) Total 11,098 100% under the Risk Mitigation Independent Power Procurement Programme Programme (REIPPP) for various renewable Historically, about 50% of projects in pipeline have been technologies has been launched and the proposal submis- realised. The pipeline projects are in different stages of sion date is in third quarter 2021. development and maturity, but they are all typically in markets with an established government framework for Scatec, together with local partners, have been awarded renewables and for which project finance is available (from two solar projects, in total 525 MW, in a tender in Iraq, and commercial banks or multilateral development banks). is currently in discussions with the authorities and lenders The project sites and concessions have been secured and on the required contract structues to finance and con- negotiations related power sales and other project imple- struct this capacity. The projects remains in our pipeline mentation agreements are in various stages of completion. until this is further clarified.

Latin America (1,325 MW) Hydropower project development is undertaken in the Scatec’s development efforts for solar in Latin America 51/49 joint venture between Scatec and Norfund. Efforts is now mainly focused on Brazil, where Scatec has been are concentrated on the 153 MW Ruzizi project in Rwanda/ partnering with Equinor over the last few years. Selected DRC, the 120 MW Volobe project at Madagascar and devel- opportunities are also being pursued in other markets. opment in Malawi. Scatec has secured rights to a number of projects in Brazil and is seeking to secure power purchase agreements In addition, Scatec is developing a broad pipeline of projects through upcoming tenders and negotiations with corporate across several markets and technologies, including Egypt, off-takers. Nigeria, Cameroon, Tunisia and several other countries on the continent. Some of the projects are based on bi-lateral In fourth quarter 2020, Scatec signed an MoU with Equinor negotiations with governments and state-owned utilities, and Hydro for the solar development of the 530 MW while Scatec is also selectively participating in tenders.

1) Includes Hydropower pipeline after closing of SN Power acquisition. 14 First quarter 2021

Through its Release concept, Scatec has increased its In Malaysia it is expected that the new government will efforts in securing agreements with private companies, maintain the same level of ambition for the renewable smaller state-owned utilities and Non-Governmental energy sector as before and there will be opportuni- Organisations, like the UN. These are typically smaller ties within solar through both tenders and bilateral projects in the range of 5 to 20 MW and Scatec is currently negotiations. actively working on a portfolio of about 300 MW of this type of projects on the African continent. Scatec is developing a range of projects in Vietnam, both solar and wind. These are projects that fit well with the Europe and Central/South Asia (1,330 MW) stated objectives of the authorities in terms of the future Scatec is currently mainly pursuing solar project opportuni- implementation of renewable energy in the country. ties in India and Poland. In the Philippines, two major laws have incentivised growth India is expected to be one of the countries with highest of renewables and the country now aims for 15.3 GW of renewable energy growth globally in the coming years. renewables capacity by 2030. A feed-in tariff has spurred Expected investment returns have improved over the over 1 GW of renewable energy installations, and it is last couple of years and India is therefore becoming an expected that implementation of Renewable Portfolio attractive renewables market. Scatec is working on several Standards will be fast-tracked. Scatec is working on large project opportunities in the country. developing project opportunities across various renewable technologies in the country. Poland has ambitious targets for renewable energy. The energy market is deregulated and renewable energy pro- Scatec is developing 227 MW of hybrid solutions and jects are incentivized through auctions awarding contracts a Greenfield hydropower project in Joint Venture with for difference and it is also possible to sell energy under its partner Aboitiz in the Philippines. Assessments are PPAs to industrial companies. Scatec is working on a ongoing to expand the scope of project development in portfolio of renewable energy projects in the country. the partnership to take further advantage of growth in renewables. The region represents a major potential for increase in hydropower capacity supported by political development. Further hydropower acquisitions and greenfield opportuni- The focus is on opportunities to acquire assets with poten- ties across the region are being evaluated and pursued as tial to improve operational performance and Greenfield markets open up for IPPs and to take advantage of Scatec’s projects in the central to western part of Asia and in India. presence within solar. Due to the political situation, the development of the Middle Yeywa project in Myanmar is Southeast Asia (3,750 MW) currently on hold. Malaysia, Vietnam and the Philippines are markets Scatec currently is focused on in Southeast Asia. Scatec ASA 15

Proportionate financials Break down of Power Production segment Key financials

Q1 2021

South Czech Philippines Africa 1) Uganda Malaysia Egypt Laos Ukraine Republic Honduras Jordan Brazil Vietnam Other 2) Total

NOK million

Revenues 360 129 77 92 69 58 20 19 25 19 17 22 16 924 Cost of sales -79 ------79 OPEX -37 -22 -5 -12 -12 -6 -4 -3 -4 -3 -4 -2 -27 -140 EBITDA 243 107 72 81 57 52 16 16 21 16 13 20 -11 704 EBITDA margin 68% 83% 94% 88% 83% 89% 80% 86% 85% 86% 78% 89% -67% 76% Cash flow to equity 5403) 34 40 20 22 18 -11 3 13 3 2 7 -11 681 Scatec economic interest 4) 50% 45% 28% 100% 51% 20% 91% 100% 51% 62% 44% 100% - - Net production (GWh) 168 119 109 90 114 128 15 3 21 14 32 30 11 854

1) Includes Kalkbult, Linde, Dreunberg and Upington projects 2) Includes Rwanda, Mozambique and Release 3) The amount includes NOK 397 million from a refinancing of the projects 4) The project companies in Philippines, Uganda, Laos and Brazil are equity consolidated in the in the groups financial statements

Q1 2020 3)

South Czech Philippines Africa 1) Uganda Malaysia Egypt Laos Ukraine Republic Honduras Jordan Brazil Vietnam Other 2) Total

NOK million

Revenues - 103 - 95 73 - 9 23 31 20 21 - 17 391 Cost of sales ------OPEX - -14 - -9 -10 - -2 -3 -4 -3 -5 - -11 -60 EBITDA - 88 - 86 62 - 7 20 27 17 16 - 6 331 EBITDA margin - 86% - 91% 86% - 79% 89% 88% 86% 76% - 37% 85% Cash flow to equity - 29 - 28 20 - -1 6 17 2 4 - -1 105 Scatec economic interest 4) - 45% - 100% 51% - 91% 100% 51% 62% 44% - - - Net production (GWh) - 73 - 81 109 - 6 4 23 13 30 - 10 349

1) Includes Kalkbult, Linde, Dreunberg and Upington projects 2) Includes Rwanda, Mozambique and Release 3) The acquisition of SN Power took place in January 2021, hence zero values for Philippines, Uganda, Laos and Vietnam in 2020 4) The project companies in Brazil are equity consolidated in the in the groups financial statements 16 First quarter 2021

FY 2020 3)

South Czech Philippines Africa 1) Uganda Malaysia Egypt Laos Ukraine Republic Honduras Jordan Brazil Vietnam Other 2) Total

NOK million

Revenues - 470 - 335 319 - 107 127 112 97 78 - 63 1,708 Cost of sales ------OPEX - -76 - -40 -51 - -13 -12 -18 -14 -17 - -63 -304 EBITDA - 394 - 295 268 - 94 116 93 83 61 - - 1,404 EBITDA margin - 84% - 88% 84% - 88% 91% 83% 86% 78% - - 82% Cash flow to equity - 116 - 55 104 - 19 54 55 21 30 - -26 427 Scatec economic interest 4) - 45% - 100% 51% - 91% 100% 51% 62% 44% - - - Net production (GWh) - 417 - 294 473 - 80 23 81 62 129 - 43 1,602

Financial position and working capital breakdown Proportionate financials

31 March 2021

Power plants in operation

South Czech Philippines Africa 1) Uganda Malaysia Egypt Laos Ukraine Republic Honduras Jordan Brazil Vietnam Other 3) Total

NOK million

Project equity 1) 1,481 266 685 519 365 491 324 122 820 212 165 145 60 5,653 Total assets 4) 4,537 2,472 2,231 2,972 2,045 945 963 511 1,032 673 459 530 428 19,797 PP&E 2,116 2,142 1,990 2,826 1,758 800 822 425 923 527 420 433 355 15,535 Cash 335 229 175 343 200 87 23 31 38 127 9 41 46 1,683 Gross interest bearing debt 2) 1,594 1,866 894 2,154 1,451 397 577 321 152 392 260 337 289 10,683 Net interest bearing debt 2) 1,259 1,637 719 1,812 1,251 310 554 290 113 265 251 296 243 9,001 Net working capital 2) -93 -111 40 -491 -93 -79 -487 -21 18 -62 -16 -6 -10 -1,411 Scatec economic interest 50% 45% 28% 100% 51% 20% 73% 100% 51% 62% 44% 100%

Power plants under construction

Ukraine Argentina Total

NOK million

Project equity 1) 1,012 225 1,237 Total assets 4) 2,169 555 2,724 PP&E 1,937 535 2,471 Cash 13 3 15 Gross interest bearing debt 2) 286 308 594 Net interest bearing debt 2) 274 305 579 Net working capital 2) -896 -296 -1,192 Scatec economic interest 100% 50%

1) See Other definitions appendix for definition 2) See Alternative Performance Measures appendix for definition 3) Includes Rwanda, Mozambique and Release 4) The above asset figures does not include group adjustments of internal margins or group level PPA’s

Bridge from proportionate to consolidated financials

31 March 2021

Power Power Residual ownership Elimination of PP overhead, D&C, plants under plants under interest for fully equity consolidated Services, Corporate, NOK million operation construction consolidated entities entities 3) Eliminations Consolidated

Project equity 1) 5,653 1,237 1,240 -3,046 4,553 9,637 Total assets 19,797 2,724 6,607 1,023 3,401 33,553 PP&E-in power projects 15,535 2,471 5,617 -5,860 -1,839 15,925 Cash 1,683 15 674 -608 3,020 4,783 Gross interest bearing debt 2) 10,683 594 4,589 -3,453 7,114 19,527 Net interest bearing debt 2) 9,001 579 3,915 -2,845 4,094 14,744 Net-working capital 2) -1,411 -1,192 -479 444 190 -2,449

1) See Other definitions appendix for definition 2) See Alternative Performance Measures appendix for definition 3) Elimination of the project companies in Philippines, Uganda, Laos and Brazil, which are equity consolidated in the in the groups financial statements. 18 First quarter 2021

Condensed interim financial information

Interim consolidated statement of profit or loss

NOK million Notes Q1 2021 Q1 2020 FY 2020

Revenues 2 693 630 2,771 Net income/(loss) from JVs and associated companies 9 138 -5 -16 Total revenues and other income 831 625 2,754

Personnel expenses 2 -82 -54 -262 Other operating expenses 2 -118 -69 -423 Depreciation, amortisation and impairment 2,3 -187 -175 -777 Operating profit (EBIT) 444 328 1,292

Interest and other financial income 4 22 12 57 Interest and other financial expenses 4 -357 -250 -1,189 Net foreign exchange gain/(losses) 4 -9 320 -398 Net financial expenses -344 82 -1,530

Profit/(loss) before income tax 100 410 -238

Income tax (expense)/benefit 6 -59 -111 -130 Profit/(loss) for the period 42 299 -368

Profit/(loss) attributable to: Equity holders of the parent 18 235 -478 Non-controlling interests 24 64 110

Basic earnings per share (NOK) 1) 0.11 1.87 -3.51 Diluted earnings per share (NOK) 1) 0.11 1.82 -3.51

1) Based on average 158.9 million shares outstanding for the purpose of earnings per share and average 160.2 million shares outstanding for the purpose of diluted earnings per share Scatec ASA 19

Interim consolidated statement of comprehensive income

NOK million Notes Q1 2021 Q1 2020 FY 2020

Profit/(loss) for the period 42 299 -368

Other comprehensive income: Items that may subsequently be reclassified to profit or loss Net movement of cash flow hedges 308 -310 -376 Income tax effect 6 -74 74 98 Foreign currency translation differences -64 343 -116 Net other comprehensive income to be reclassified to profit or loss in subsequent periods 170 106 -394

Total comprehensive income for the period net of tax 212 405 -762

Attributable to: Equity holders of the parent 85 378 -698 Non-controlling interests 127 27 -65 20 First quarter 2021

Interim consolidated statement of financial position

NOK million Notes As of 31 March 2021 As of 31 December 2020

Assets Non-current assets Deferred tax assets 6 646 722 Property, plant and equipment – power plants 3 15,925 15,861 Property, plant and equipment – other 3 391 225 Goodwill 8 239 25 Investments in JVs and associated companies 9 9,750 612 Other non-current assets 233 144 Total non-current assets 27,184 17,590

Current assets Trade and other receivables 691 623 Other current assets 895 663 Cash and cash equivalents 5 4,783 7,788 Total current assets 6,369 9,074 Total assets 33,553 26,663 Scatec ASA 21

Interim consolidated statement of financial position

NOK million Notes As of 31 March 2021 As of 31 December 2020

Equity and liabilities Equity Share capital 4 4 Share premium 9,767 9,720 Total paid in capital 9,770 9,724 Retained earnings -691 -708 Other reserves -154 -221 Total other equity -844 -929 Non-controlling interests 712 673 Total equity 9,637 9,467

Non-current liabilities Deferred tax liabilities 6 248 205 Non-recourse project financing 4 10,533 11,350 Corporate financing 5 7,114 - Financial liabilities 279 572 Other non-current liabilities 1,585 1,575 Total non-current liabilities 19,760 13,701

Current liabilities Corporate financing 5 - 748 Trade and other payables 748 760 Income tax payable 6 104 90 Non-recourse project financing 4 1,880 913 Financial liabilities 122 131 Other current liabilities 1,302 852 Total current liabilities 4,156 3,495 Total liabilities 23,916 17,196 Total equity and liabilities 33,553 26,663

Oslo, 29 April 2021 The Board of Directors of Scatec ASA 22 First quarter 2021

Interim consolidated statement of changes in equity

Other reserves

Foreign Share Share Retained currency Hedging Non-controlling Total NOK million capital premium earnings translation reserves Total interests equity

At 1 January 2020 3 1,806 -134 128 -130 2,975 663 3,640 Profit for the period - - 235 - - 235 64 299 Other comprehensive income - - - 287 -144 143 -37 106 Total comprehensive income - - 235 287 -144 378 27 405 Share-based payment - 3 - - - 3 - 3 Share capital increase - 26 - - - 26 - 26 Dividend distribution ------110 -110 Capital increase from NCI ------95 95 At 31 March 2020 3 3,317 100 415 -274 3,382 677 4,059

At 1 April 2020 3 3,317 100 415 -274 3,382 677 4,059 Profit for the period - - -713 - - -713 46 -667 Other comprehensive income - - -1 -376 13 -363 -137 -500 Total comprehensive income - - -713 -376 13 -1,076 -92 -1,167 Share-based payment - 11 - - - 11 - 11 Share capital increase 1 6,717 - - - 6,718 - 6,718 Transaction cost, net after tax - -144 - - - -144 - -144 Share purchase program - -1 - - - -1 - -1 Dividend distribution - - -131 - - -131 -38 -169 Purchase of NCIs shares in group companies - - 35 - - 35 - 35 Capital increase from NCI ------126 126 At 31 December 2020 4 9,720 -710 39 -261 8,796 674 9,468

At 1 January 2021 4 9,720 -710 39 -261 8,796 674 9,468 Profit for the period - - 18 - - 18 24 42 Other comprehensive income - - - -60 127 67 103 170 Total comprehensive income - - 18 -60 127 85 127 212 Share-based payment - 5 - - - 5 - 5 Share capital increase - 42 - - - 42 - 42 Dividend distribution ------88 -88 At 31 March 2021 4 9,767 -691 -20 -134 8,927 712 9,637 Scatec ASA 23

Interim consolidated statement of cash flow

NOK million Notes Q1 2021 Q1 2020 FY 2020

Cash flow from operating activities Profit before taxes 100 410 -238 Taxes paid 6 -15 -63 -214 Depreciation and impairment 3 187 175 777 Proceeds from disposal of fixed assets 3 3 - 26 Net income from JVs and associated companies 9 -138 5 16 Interest and other financial income 4 -22 -12 -57 Interest and other financial expenses 4 357 250 1,189 Unrealised foreign exchange (gain)/loss 4 9 -320 398 Increase/(decrease) in other assets and liabilities -242 285 -262 Net cash flow from operating activities 239 729 1,636

Cash flow from investing activities Interest received 4 22 12 57 Consideration paid for SN Power, net of cash acquired 1) 8 -7,560 - - Investments in property, plant and equipment 3 -149 -730 -1,774 Net investments in, and distributions from, JVs and associated companies 9 63 -5 12 Net cash flow from investing activities -7,624 -723 -1,704

Cash flow from financing activities Net proceeds and repayment from non-controlling interests 2) -34 105 159 Interest paid 4 -187 -108 -894 Proceeds from non-recourse project financing 42 45 135 Repayment of non-recourse project financing -118 -61 -678 Net proceeds from corporate financing3) 5 4,729 315 - Share capital increase 42 26 6,576 Dividends paid to equity holders of the parent company and non-controlling interests -88 -110 -279 Net cash flow from financing activities 4,386 213 5,020

Net increase/(decrease) in cash and cash equivalents -2,999 219 4,951 Effect of exchange rate changes on cash and cash equivalents -6 16 13 Cash and cash equivalents at beginning of the period 7,788 2,824 2,824 Cash and cash equivalents at end of the period 5 4,783 3,058 7,788

1) Consideration paid for SN Power comprise of payment made at the transaction date, excluding NOK 826 million of cash in acquired companies 2) Net proceeds from non-controlling interests include both equity contributions and shareholder loans 3) Net proceeds from corporate financing include proceeds from issuance of EUR 250 million green bond, USD 400 million bridge to bond facility and USD 150 green term loan, as well as redemption of NOK 750 million green bond and partial repayment of the USD 400 million bridge to bond facility. See note 5 Cash, cash equivalents and corporate funding for further details. 24 First quarter 2021

Notes to the condensed interim consolidated financial statements

Note 1 Organisation and basis for preparation

Corporate information January 2021 the functional currency of Scatec ASA is Scatec ASA is incorporated and domiciled in Norway. The determined to be US Dollars, being the currency which address of its registered office is Askekroken 11, NO-0277 primarily affects the financials of the company. Up until Oslo, Norway. Scatec ASA was established on 2 February 31 December 2020 the functional currency of Scatec ASA 2007. was Norwegian kroner (NOK). The presentation currency of the Group is Norwegian kroner (NOK). All amounts are Scatec ASA (“the Company”), its subsidiaries and invest- presented in NOK million unless otherwise stated. ments in associated companies (“the Group” or “Scatec”) is a leading renewable power producer, delivering affordable As a result of rounding adjustments, the figures in some and clean energy worldwide. As a long- term player, Scatec columns may not add up to the total of that column. develops, builds and operates renewable power plants and integrates technologies. Significant estimates and judgements The preparation of condensed interim consolidated The condensed interim consolidated financial statements financial statements in conformity with IFRS requires for the first quarter 2021 were authorised by the Board of management to make judgements, estimates and assump- Directors for issue on 29 April 2021. tions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Basis of preparation These condensed interim consolidated financial state- Judgements ments are prepared in accordance with recognition, In the process of applying the Group’s accounting policies, measurement and presentation principles consistent with management make judgements of which the following International Financing Reporting Standards as adopted have the most significant effect on the amounts recog- by the European Union (“IFRS”) for interim reporting under nised in the condensed interim financial statements. International Accounting Standard (“IAS”) 34 Interim Financial Reporting. These condensed interim consolidated Consolidation of power plant companies financial statements are unaudited. Scatec’s value chain comprises all downstream activities such as project development, financing, construction and These condensed interim consolidated financial statements operations, as well as having an asset management role are condensed and do not include all of the information through ownership of the power plants. Normally Scatec and notes required by IFRS for a complete set of con- enters into partnerships for the shareholding of the power solidated financial statements. These condensed interim plant companies owning the power plants. To be able to consolidated financial statements should be read in con- utilise the business model fully, Scatec normally seeks to junction with the annual consolidated financial statements. obtain operational control of the power plant companies. Operational control is obtained through governing bodies, The accounting policies adopted in the preparation of the shareholder agreements and other contractual arrange- condensed interim consolidated financial statements are ments. Other contractual arrangements may include consistent with those followed in the preparation of the Scatec’s role as the developer of the project, EPC provider Group’s annual consolidated financial statements for 2020. (construction), operation and maintenance service provider and asset management service provider. The functional currency of the companies in the Group is determined based on the nature of the primary economic When assessing whether Scatec controls a power plant environment in which each company operates. From 1 company as defined by IFRS 10 Consolidated Financial Scatec ASA 25

Statements, the Group’s roles and activities are analysed in were transferred to Scatec ASA and 29 January 2021 serves line with the requirements and definitions in IFRS 10. as the transaction date under IFRS from which SN Power has been included in the consolidated figures for of the Refer to note 3 of the 2020 annual report for further group. information on judgements, including control assessments made in previous years. Estimates and assumptions The estimates and underlying assumptions are reviewed Acquisition of SN Power on an ongoing basis, considering the current and expected Scatec ASA acquired 100% of the shares of SN Power future market conditions. Changes in accounting esti- AS on 29 January 2021. SN Power AS was acquired from mates are recognised in the period in which the estimate Norfund for a total consideration of USD 1,200 million (NOK is revised if the revision affects only that period or in the 10,371 million). See note 8 Business combination for further period of the revision and future periods if the revision information about the acquisition and the fair value of affects both current and future periods. the identifiable assets and liabilities of SN Power and the purchase price allocation. Seasonality in operations Interim period results are not necessarily indicative of Completion of the acquisition as defined in the Share results of operations or cash flows for an annual period. Purchase Agreement (SPA) was made on 29 January 2021. The Group’s operating results are impacted by external fac- At completion the control and legal ownership of SN Power tors, such as seasonal variations and weather conditions.

Note 2 Operating segments

Operating segments align with internal management is transferred to Scatec from 1 January 2021. Consequently reporting to the Group’s chief operating decision maker, SN Power is included in the proportionate segment defined as the Group management team. The operating financials from 1 January 2021. In the Group consolidated segments are determined based on differences in the IFRS financials the date of inclusion is 29 January 2021, nature of their operations, products and services. which is the date of completion when Scatec obtained control over the project companies as defined by IFRS. A Scatec manages its operations in three segments; Power full reconciliation between the proportionate and the IFRS Production (PP), Services and Development & Construction financials including the effect of January 2021 is provided (D&C). in the tables below.

From January 2021 the group has incorporated the hydro Power Production and wind producing assets in the Power Production The Power Production segment manages the Group’s segment, other activities related to the development, power producing assets and derives its revenue from the construction and operations of the wind and hydro plants production and sale of solar, wind and hydro generated are incorporated in the different segments according to its electricity. The electricity is primarily sold on long-term nature, as defined below. Power Purchase Agreements or feed-in-tariffs except for in the Philippines where the electricity is sold on bilateral The management team assesses the performance of the contracts and the spot market. Finance and operation of operating segments based on a measure of gross profit the plants is ring-fenced in power plant companies with and operating profit; hence interest income/expense is not a non-recourse finance structure. This implies that the disclosed per segment. project debt is only secured and serviced by project assets and the cash flows generated by the project, and that there The acquisition of SN Power from January 2021 is struc- is no obligation for project equity investors to contribute tured so that the economic risk of the acquired companies additional funding in the event of a default. Free cash flows 26 First quarter 2021

after debt service are distributed from these power plant and are accounted for using the percentage of completion companies to Scatec, and any other project equity inves- method. tors in accordance with the shareholding and the terms of the finance documents. Corporate Corporate consists of the activities of corporate services, Services management and group finance. The Services segment comprises Operations & Maintenance (O&M) and Asset Management services No segments have been aggregated to form these report- provided to solar and hydro power plants where Scatec ing segments. Revenues from transactions between the has economic interest. O&M revenues are generated on D&C, Services and PP segments, where Scatec is deemed the basis of fixed service fees with additional profit-sharing to hold a controlling interest, are presented as internal arrangements. Asset Management services typically include revenues in the segment reporting and eliminated in the financial reporting to sponsors and lenders, regulatory consolidated statement of profit or loss. These transac- compliance, environmental and social management, as tions are based on international contract standards and well as contract management on behalf of the power plant terms negotiated at arm’s length with lenders and co-in- companies. vestors in each power plant company.

Development & Construction Use of proportionate financials The Development and Construction segment derives its The segment financials are reported on proportionate revenue from the sale of development rights and construc- basis. With proportionate financials Scatec reports its tion services to power plant companies set up to operate share of revenues, expenses, profits and cash flows the Group’s solar, wind and hydro power plants. These from all its subsidiaries without eliminations based on transactions are primarily made with companies that are Scatec’s economic interest in the subsidiaries. The Group under the control of the Group and hence are being con- introduced Proportionate Financials as the Group is of solidated. Revenues from transfer of development rights the opinion that this method improves earnings visibility. are recognised upon the transfer of title. Revenues from Proportionate financials are further described in the APM construction services are based on fixed price contracts section of this report. Scatec ASA 27

Q1 2021

Residual Proportionate financials ownership for fully Elimination consol- of equity Power Development & idated consolidated Other Consolidated NOK million Production Services Construction Corporate Total entities 1) entities 2) 4) eliminations 3) 4) financials

External revenues 924 1 - - 925 279 -511 - 693 Internal revenues - 55 24 6 85 6 -3 -88 - Net income from JV and associates 5) ------138 - 138 Total revenues and other income 924 56 24 6 1,010 284 -376 -87 831 Cost of sales -79 - -24 - -103 - 79 23 - Gross profit 844 56 - 6 907 284 -295 -64 831 Personnel expenses -24 -22 -36 -17 -99 -2 12 7 -82 Other operating expenses -116 -17 -24 -14 -172 -50 43 60 -118 EBITDA 704 17 -60 -25 636 232 -240 3 631 Depreciation and impairment -221 -1 -2 -6 -230 -78 77 44 -187 Operating profit (EBIT) 483 16 -62 -31 406 153 -162 47 444

1) Residual ownerships interests share of the proportionate financials in fully consolidated subsidiaries where Scatec do not have 100% economic interest. 2) Elimination of proportionate financials from equity consolidated entities adjusted for Scatec’s share of net income/(loss). 3) Other eliminations made in the preparation of the Groups IFRS consolidated financials. 4) The proportionate amount of total revenues, EBITDA, EBIT and net profit included for the SN Power entities for January 2021 are NOK 184 million, NOK 119 million, NOK 92 million and NOK 45 million respectively. Of this a net profit of NOK 57 million from equity consolidated entities and NOK -12 million is from fully consolidated entities. 5) Refer to note 9 – Investments in joint venture and associated companies for details`on Net income from JV and associates.

Q1 2020

External revenues 391 - - - 391 259 -20 - 630 Internal revenues - 52 414 8 475 169 -10 -633 - Net income from JV and associates ------5 - -5 Total revenues and other income 391 52 414 8 866 428 -35 -633 625 Cost of sales - - -369 - -368 -156 6 518 - Gross profit 391 52 46 8 497 271 -29 -114 625 Personnel expenses -6 -17 -19 -14 -56 - 1 1 -54 Other operating expenses -55 -19 -11 -10 -95 -36 6 56 -69 EBITDA 331 16 15 -16 346 235 -22 -57 503 Depreciation and impairment -125 -1 -10 -5 -140 -70 8 26 -175 Operating profit (EBIT) 206 15 5 -21 206 165 -13 -30 328

1) Residual ownerships interests share of the proportionate financials in fully consolidated subsidiaries where Scatec do not have 100% economic interest 2) Elimination of proportionate financials from equity consolidated entities adjusted for Scatec’s share of net income/(loss) 3) Other eliminations made in the preparation of the Groups IFRS consolidated financials. 28 First quarter 2021

FY 2020

Residual Proportionate financials ownership for fully Elimination consol- of equity Power Development idated consolidated Other Consolidated NOK million Production Services & Construction Corporate Total entities 1) entities 2) eliminations 3) financials

External revenues 1,708 1 12 5 1,727 1,131 -77 -10 2,771 Internal revenues - 231 861 28 1,118 310 -25 -1,403 - Net income from JV and associates ------16 - -16 Total revenues and other income 1,708 232 873 33 2,844 1,442 -119 -1,414 2,754 Cost of sales - - -764 - -764 -271 17 1,017 - Gross profit 1,708 232 109 33 2,080 1,171 -102 -396 2,754 Personnel expenses -28 -75 -85 -72 -259 -3 6 -7 -262 Other operating expenses -276 -75 -52 -113 -517 -189 26 256 -423 EBITDA 1,404 82 -28 -153 1,306 979 -69 -147 2,069 Depreciation and impairment -566 -3 -26 -20 -615 -321 29 131 -777 Operating profit (EBIT) 838 79 -54 -173 690 658 -40 -16 1,292

Note 3 Property, plant and equipment

Scatec operates solar, wind and hydro power plants in plants in Phillipines, Laos and Uganda are equity consoli- Europe, South East Asia, Middle East, Africa and South dated and hence not included in the below table. America. The power plant companies in Argentina, Brazil, Phillipines, Laos and Uganda are equity consolidated and In Ukraine the 32 MW Kamianka project started commer- hence not included in the below table. cial operation from 1 January 2021.

On 29 January 2021, Scatec ASA acquired 100% of the There have not been recorded an impairment charge in shares of SN Power AS, which had a portfolio of wind and 2021. Total impairments amounted to NOK 11 million in hydro. The 39 MW Dam Nai Wind project is fully consoli- 2020. dated and included in the below table. The hydro power

Intangible assets, Power plants under Power plants under equipment and NOK million Power plants construction development 1) other assets Total

Carrying value at 31 December 2020 13,765 1,822 275 225 16,086 Additions from consolidated SNP entities 2) 412 - - 152 564 Additions 95 27 6 20 149 Disposals - - -3 - -3 Transfer between asset classes 680 -680 - - - Depreciation -177 - - -10 -187 Impairment losses - - - - - Effect of foreign exchange currency translation adjustments -199 -89 -7 3 -292 Carrying value at 31 March 2021 14,575 1,080 271 391 16,316

Estimated useful life (years) 20-25 N/A N/A 3-20

1) Power plants under development and construction includes NOK 46 million of capitalised right to transmit electricity 2) Additions following the acquisition of SN Power, mainly related to assets in Dam Nai 30 First quarter 2021

Note 4 Net financial expenses and liabilities and significant fair value measurements

Scatec uses non-recourse financing for constructing and/ was not approved by the lenders as of 31 March 2021, this or acquiring assets in power plant companies, exclusively was defined as an event of default. The Bougslav project using as guarantee the assets and cash flows of the power failed to meet a loan covenant due to missing payments of plants carrying out the activities financed. Compared to revenues following a delayed funding of the offtaker. Scatec corporate financing, non-recourse financing has certain is in close dialogue with the lenders to resolve the above key advantages, including a clearly defined and limited topics, and no intention to accelerate the loans has been risk profile. In this respect, the banks recover the financing communicated. Nevertheless, NOK 921 million of non-cur- solely through the cash flows generated by the projects rent non-recourse debt has been presented as current in financed. For four of the five solar power companies the statement of financial position as of 31 March 2021 in operating in the Czech Republic and three of the four solar line with requirements in IFRS. power companies in Malaysia, the non-recourse financing agreements include a cross default clause within the Czech During the first quarter of 2021 the Group has drawn a total and Malaysian group respectively. of NOK 118 million on the non-recourse financing for the construction projects in the Group. The power plant companies’ assets are pledged as security for the non-recourse financing. The repayment plan for Refer to note 5 – Cash, cash equivalents and corporate the debt is a sculpted annuity; hence the sum of loan funding for information on the Group`s credit facilities and and interest repayments are not stable from year to year. the new senior unsecured green bond issued in the first Repayments are normally made twice a year. The maturity quarter of 2021. date for the loans ranges from 2028 to 2038. Derivative financial instruments (including interest rate NOK 959 million of the Group’s total non-recourse debt swaps and forward exchange contracts) are valued at fair is due within 12 months and is presented as current in value on Level 2 of the fair value hierarchy, in which the fair the statement of financial position, together with accrued value is calculated by comparing the terms agreed under interest. In addition, the Rengy, Chigrin, Kamianka and each derivative contract to the market terms for a similar Bougslav projects in Ukraine failed to meet certain loan contract on the valuation date. Note 7 in the annual report covenants measured at 31 March 2021. The offtaker in for 2020 provides details for each class of financial assets Ukraine required the Rengy, Chigrin and Kamianka projects and financial liabilities, and how these assets and liabilities to do some smaller changes to the PPA, and since this are grouped.

NOK million Q1 2021 Q4 2020 Q1 2020 FY 2020

Interest income 12 14 11 48 Other financial income 10 4 1 8 Financial income 22 18 12 57

Interest expenses -337 -341 -237 -1,131 Forward exchange contracts - - -6 -7 Other financial expenses -19 -21 -7 -51 Financial expenses -357 -363 -250 -1,189

Foreign exchange gains/(losses) -9 -480 320 -398 Net financial expenses -344 -825 82 -1,530 Scatec ASA 31

Note 5 Cash, cash equivalents and corporate funding

NOK million 31 March 2021 31 December 2020

Cash in power plant companies in operation 1,750 1,741 Cash in power plant companies under development/construction 13 11 Other restricted cash 102 87 Free cash 2,918 5,949 Total cash and cash equivalents 4,783 7,788

• There are no significant changes in the presentation of Other restricted cash comprises restricted deposits for these categories in the period. withholding tax, guarantees, VAT and rent, NCI’s share of • Cash in power plant companies in operation includes free cash as well as collateralised shareholder financing of restricted cash in proceed accounts, debt service reserve power plant companies not yet distributed to the power accounts, disbursements accounts, maintenance and plant companies. Net cash effect from Working Capital/ insurance reserve accounts and similar. These cash and Other is mainly related to ongoing construction projects. cash equivalents are only available to the Group through distributions as determined by shareholder and non-recourse financing agreements. • Cash in power plant companies under development and construction comprises shareholder financing and draw down on loan facilities to settle outstanding external EPC invoices.

Movement in free cash at group level (in recourse group as defined in bond & loan facilities)

NOK million Q1 2021 Q4 2020 Q1 2020 FY 2020

Free cash at beginning of period 5,949 1,885 758 758 Free cash in acquired SN Power entities at 1 January 2021 491 - - - Proportionate share of cash flow to equity1) Services 14 8 13 65 Proportionate share of cash flow to equity1) D&C -51 -27 13 -15 Proportionate share of cash flow to equity1 CORP -72 -55 -24 -153 Project development capex -20 -31 -56 -156 Equity contributions to power plant companies 2) -359 -83 -353 -756 Distributions from power plant companies 3) 723 114 142 346 Share capital increase, net after transaction cost - 4,622 - 6,575 Dividend distribution - - - -131 Net cash considerations from acquisition of SN Power -3,558 - - - Working capital / Other -199 -483 -91 -584 Drawn on credit facilities - - 315 - Free cash at end of the period 2,918 5,949 717 5,949

Available undrawn credit facilities 1,580 813 1,415 813 Total free cash and undrawn credit facilities at the end of the period 4,498 6,762 2,132 6,762

1) Proportionate share of cash flow to equity is defined in Alternative Performance Measures Appendix. 2) Equity contributions to power plant companies consist of equity injections and shareholder loans. The amount for 2021 includes equity paid by SN Power before 29 January 2021 for the acquisition of the Dam Nai project in Vietnam. 3) The amount includes NOK 516 million - net of withholding taxes of NOK 62 million - paid by the project companies in Philippines before 29 January 2021, where NOK 397 million are additional distributions subsequent to a refinancing of the projects 32 First quarter 2021

Guarantee facility • USD 300 million bridge to equity facility provided by In the first quarter of 2021, Scatec amended the guarantee Nordea, Swedbank and DNB with maturity in June facility and intercreditor agreement that was established in 2022. The facility was repaid in full following the private 2017, to also include DNB as instrument lender. The guar- placement in October 2020. antee facility has Nordea Bank as agent and issuer, Nordea • USD 200 million Vendor Financing provided by Norfund Bank, Swedbank, BNP Paribas and DNB as guarantee with maturity in the first quarter of 2028. instrument lenders. The guarantee facility is mainly used to provide advanced payment-, performance- and warranty Green bond bonds under construction agreements, as well as trade In the first quarter of 2021 Scatec issued a EUR 250 million letter of credits. The intercreditor agreement is entered into senior unsecured green bond with maturity in August 2025. by Scatec, the issuing banks under the guarantee facility The bond carries a coupon of 3-month EURIBOR (with no and GIEK. GIEK can issue counter indemnity in favour of the floor) + 2.50%, to be settled on a quarterly basis. The bond issuing banks on behalf of the relevant instrument lenders. will be listed on the Oslo Stock Exchange in the second quarter of 2021. Revolving credit facility In the first quarter of 2021, at the closing of the SN Power The proceeds from the bond issue were used to acquisition, Scatec increased the existing revolving credit • redeem in whole the NOK 750 million senior unsecured facility (RCF) to USD 180 million, with Nordea Bank as agent green bond issued in 2017, with ticker SSO02 ESG, and Nordea Bank, Swedbank, DNB and BNP Paribas as including any call premium and accrued interest. equal Lenders. The facility can be drawn in USD, NOK, EUR • to partially refinance the bridge to bond facility that was or an optional currency agreed with the banks. The facility committed in 2020 in relation to the acquisition of SN is ESG (Environmental, Social and Governance) linked and Power. has a three year tenor. The facility margin is linked to the • cover for other eligible activities as set out in Scatec’s following ESG KPIs: Green Financing Framework.

• A targeted level for LTIFR (Lost time incident frequency Per 31 March 2021, Scatec was in compliance with financial rate) for the Group covenants related to the above facilities. The book equity • Anti-Corruption training for all employees of the recourse group, as defined in the facility agreements, • Environmental and social baseline studies and risk was NOK 11,190 million per quarter end. assessment on all power plants by external experts During the first quarter of 2021, interest amounting to Scatec has not drawn on the revolving credit facility per 31 NOK 83 million (NOK 45 million in previous quarter) was March 2021. expensed for the bond, overdraft- and revolving credit facility. The increased interest expenses follows the increase in Acquisition Finance related to the SN Power corporate debt level after the acquisition of SN Power and transaction an on-off redemption fee relating to the redeemed NOK The following financing package in the total amount of bond. USD 1,030 million was signed in the fourth quarter of 2020, to cater for the SN Power acquisition: Refer to bond agreement available on https://scatec.com/ investor/investor-overview/ for further information and • USD 150 million Green Term Loan provided by Nordea, definitions. Swedbank and DNB with maturity in the first quarter of 2025. • USD 400 million bridge to bond facility provided by Nordea, Swedbank and DNB with maturity in June 2022. USD 207 million of the facility was repaid following the EUR 250 million bond issue in the first quarter of 2021. Scatec ASA 33

Note 6 Income tax expense

The Group recognised a tax expense of NOK 59 million receives special tax incentives intended to promote (NOK 111 million) in the first quarter, corresponding to an investments in renewable energy. The effective tax rate has effective tax rate of 59% (27%). The difference between been and will be impacted by the volume of construction the actual tax expense for the quarter and a calculated activities as the tax rate in the construction companies tax expense based on the Norwegian tax rate of 22% is normally is higher than in the power plant companies. This explained primarily by withholding taxes paid on dividends means that the full tax expense on the internal profit will received from subsidiaries in addition to currency effects not be eliminated and hence increase the effective tax rate in countries in which the functional currency deviates during construction. The opposite effect will occur when from the currency for tax reporting. The tax cost is also the eliminated internal profit is reversed through lower influenced by taxable profits and -losses in tax jurisdictions depreciation at the tax rate of the power plant company. with different tax rates which offset each other in the Further, the profit/loss from JVs and associates, which group, but leaves a net tax expense to be recognized. are reported net after tax, has an impact on the effective tax rate depending on the relative size of the profit/loss The underlying tax rates in the companies in operation relative to the consolidated profit. are in the range of 0% to 33%. In some markets, Scatec

Effective tax rate

NOK million Q1 2021 Q4 2020 Q1 2020 FY 2020

Profit before income tax 100 -581 410 -238 Income tax (expense)/benefit -59 19 -111 -130 Equivalent to a tax rate of (%) 59% 3% 27% -55%

Movement in deferred tax

NOK million Q1 2021 Q4 2020 Q1 2020 FY 2020

Net deferred tax asset at beginning of period 517 414 343 343 Recognised in the consolidated statement of profit or loss -31 108 -75 25 Deferred tax on financial instruments recognised in OCI -74 -4 74 98 Deferred tax on excess values from acquisition of SN Power -19 - - - Recognised in the consolidated statement of changes in equity - 32 - 41 Translation differences 4 -32 52 9 Net deferred tax asset at end of period 397 517 395 517 34 First quarter 2021

Note 7 Related parties

Scatec have related party transactions and balances provides details of transactions with related parties and with equity consolidated JVs in Argentina, Brazil, Laos, the nature of these transactions. Madagascar, Uganda, Philippines and Rwanda, mainly loans which are included in the carrying value of the For further information on project financing provided by investments. co-investors, refer to note 28 in the annual report for 2020.

In addition, Scatec has transactions and balances with All related party transactions have been carried out as part key management. Note 26 in the annual report for 2020 of the normal course of business and at arm’s length.

Note 8 Business combinations

Acquisition of SN Power The remaining financing of the acquisition is cash. On 29 January 2021, Scatec ASA acquired 100% of the shares of SN Power AS, a leading hydropower developer The purchase price of the acquisition could still be subject and Independent Power Producer (IPP), from Norfund to certain adjustments which have not been finalized prior for a total consideration of USD 1,200 million (NOK 10,371 to the to the release of this report, including adjustments million). The transaction includes SN Power’s portfolio of for working capital in the acquired companies based on hydropower assets in the Philippines, Laos and Uganda the audited financial statements of SN Power for 2020. with a total gross capacity of 1.4 GW (net 0.5 GW) and gross Consequently, the table below which shows the fair value median production of 6.1 TWh (net 1.8 TWh) and the wind of the identifiable assets and liabilities of SN Power and the farm Dam Nai. Dam Nai was acquired by SN Power on 27 purchase price allocation, must be considered preliminary. January 2021 and has a capacity of 39.4 MW. The assessment of the preliminary purchase price allocation The acquisition forms an important part of Scatec’s broad- has been made using balance sheet figures at the transac- ened growth strategy, with an ambition to become a global tion date 29 January 2021. The purchase price adjustments large-scale player in solar, hydro, wind and storage solutions, are further described in the prospectus which was published and an integrator of high-value infrastructure solutions. in connection with the financing of the transaction. The prospectus also includes a further description of the transaction, Scatec and SN Power have a unique and complementary including pro forma financial information with a preliminary portfolio of assets, geographical footprint and capabilities, purchase price allocation. The prospectus is available on our and will together hold a large project pipeline across solar, website at www.scatec.com. hydro, wind and storage. The combined company has 500 employees, power plants in 14 countries and gross 3.3 Scatec recognised NOK 219 million in goodwill related GW of plants in operation and under construction. When to the acquisition of SN Power. Goodwill is recorded in all plants are in full operation from first half of 2021, the functional currency and as a result, changes in currency median annual production is expected to be 4.1 TWh. exchange rates affect the value of goodwill in NOK. Goodwill arising from the acquisition relates mainly to the Financing of the SN Power acquisition includes the follow- portfolio of identified project development opportunities ing debt facilities: and assembled workforce. The goodwill is not deductible for tax purposes. • USD 200 million Vendor Financing provided by Norfund with a tenor of 7 years from closing Refer to note 1 – Organisation and basis for preparation • USD 150 million Green Term Loan provided by Nordea, and note 2 – Operating segments for details regarding Swedbank and DNB with maturity 4 years from closing how the SN Power figures are included in both the • USD 400 million acquisition finance provided by Nordea, consolidated – and proportionate financials. Swedbank and DNB with a tenor of 18 months from closing Scatec ASA 35

Preliminary purchase price allocation for the acquistion of SN Power

NOK million 29 January 2021

Assets Non-current assets Property, plant and equipment 431 Goodwill & other intangible assets 352 Investments in JV and associated companies 9,172 Other non-current assets 71 Total non-current assets 10,026

Current assets Trade and other receivables 101 Cash and cash equivalents 826 Total current assets 927 Total assets 10,953

Total equity 10,371

Liabilities Non-current liabilities Deferred tax liabilities 19 Non-recourse project financing 318 Financial liabilities 1 Other non-current liabilities 50 Total non-current liabilities 387

Current liabilities Non-recourse financing 57 Trade and other payables 7 Other current liabilities 131 Total current liabilities 195 Total equity and liabilities 10,953 36 First quarter 2021

Note 9 Investments in joint venture and associated companies

The consolidated financial statements include the Group’s share of profit/loss from joint ventures and associated companies where the Group has joint control or significant influence, accounted for using the equity method. Under the equity method, the investment is initially recognised at cost and subsequently adjusted for further investments, distributions and the Group’s share of the net income from the investment.

The tables below shows the material joint ventures and associated companies recognised in the Group and the reconciliation of the carrying amount. For the first quarter of 2021, net income from the newly acquired joint ventures in Laos, Philippines and Uganda includes the share of profit for the period from 29 January to 31 March 2021.

Company Registered office Q1 2021 Q4 2020

Kube Energy AS Oslo, Norway 25% 25% Scatec Solar Brazil BV Amsterdam, Netherlands 50% 50% Apodi I Energia SPE S.A Jaboatão dos Guararapes, Brazil 43.75% 43.75% Apodi II Energia SPE S.A Jaboatão dos Guararapes, Brazil 43.75% 43.75% Apodi III Energia SPE S.A Jaboatão dos Guararapes, Brazil 43.75% 43.75% Apodi IV Energia SPE S.A Jaboatão dos Guararapes, Brazil 43.75% 43.75% Scatec Solar Solutions Brazil BV Amsterdam, Netherlands 50% 50% Scatec Solar Brasil Servicos De Engenharia LTDA Recife, Brazil 50% 50% Scatec Equinor Solutions Argentina S.A Buenos Aires, Argentina 50% 50% Cordilleras Solar VIII S.A (Argentina) Buenos Aires, Argentina 50% 50% Theun-Hinboun Power Company Vientiane, Laos 20% - SN Aboitiz Power – Magat Inc Manila, Phillippines 50% - Manila-Oslo Reneweable Enterprise Manila, Phillippines 16.7% - SN Aboitiz Power – Benguet Inc Manila, Phillippines 50% - SN Aboitiz Power – RES Inc Manila, Phillippines 50% - SN Aboitiz Power – Generation Inc Manila, Phillippines 50% - SN Power Uganda Ltd 1) Kampala, Uganda 51% - Bujagali Energy Ltd 1) Jinja, Uganda 28.28% - Campganie Générale D`Hydroelectrciite de Volobe SA 1) Antananarivo, Madagascar 12.75% - Ruzizi Holding Power Company Ltd 1) Kigali. Rwanda 20.4% Ruzizi Energy Ltd 1) Kigali. Rwanda 20.4%

1) The ownership reflects that Norfund retains a 49% stake in these investments, as communicated in the acquisition announcement (16 October 2020). Refer to note 1 for further details.

Net movement Net income of cash flow Carrying value from JV and hedges Foreign Carrying value 31 December Additions/ associated recognized in currency 31 March Country 2020 disposals companies Dividends OCI translations 2021

Brazil and Argentina 610 58 -1 - - -29 639 Laos - 1,560 23 -41 - -2 1,540 Philippines - 6,546 92 -80 - -102 6,456 Uganda - 1,066 24 - 27 -5 1,112 Other 2 3 -1 - - -1 3 Total 612 9,233 138 -121 27 -139 9,750

Note 10 Subsequent events

No events have occurred after the balance sheet date with significant impact on the interim financial statements for the first quarter of 2021. Scatec ASA 37

Alternative Performance Measures

Scatec discloses alternative performance measures (APMs) EBITDA: is defined as operating profit adjusted for depreci- in addition to those normally required by IFRS. This is ation, amortisation and impairments. based on the Group’s experience that APMs are frequently used by analysts, investors and other parties for supple- EBITDA margin: is defined as EBITDA divided by total mental information. revenues and other income.

The purpose of APMs is to provide an enhanced insight into EBITDA and EBITDA margin are used for providing con- the operations, financing and future prospect of the Group. sistent information of operating performance which is Management also uses these measures internally to drive comparable to other companies and frequently used by performance in terms of long-term target setting. APMs other stakeholders. are adjusted IFRS measures that are defined, calculated and used in a consistent and transparent manner over the Gross profit: is defined as total sales revenue including years and across the Group where relevant. net gain/loss from sale of project assets and net gain/ loss from associates minus the cost of goods sold (COGS). Financial APMs should not be considered as a substitute Gross profit is used to measure project profitability in for measures of performance in accordance with IFRS. the D&C segment and to illustrate energy sales revenues Disclosures of APMs are subject to established internal net of significant cost items directly linked to the energy control procedures. sales volume (such as cost of energy purchase) in the PP segment. Refer to note 2 Operating Segments for further Definition of alternative performance measures used by details. the Group for enhanced financial information Gross interest-bearing debt: is defined as the Group’s Cash flow to equity: is a measure that seeks to estimate total debt obligations and consists of non-current and value creation in terms of the Group’s ability to generate current external non-recourse financing and external funds for equity investments in new power plant projects corporate financing, irrespective of its maturity as well as and/or for shareholder dividends over time. Management bank overdraft and discounted notes. believes that the cash flow to equity measure provides increased understanding of the Group’s ability to create Net interest-bearing debt (NIBD): is defined as gross funds from its investments. The measure is defined as interest-bearing debt, less cash and cash equivalents. NIBD EBITDA less net interest expense, normalised loan repay- does not include shareholder loans. ments and normalised income tax payments. The definition excludes changes in net working capital, investing Net working capital includes trade- and other receivables, activities and fair value adjustment of first-time recognition other current assets, trade- and other payables, income of joint venture investments. Normalised loan repayments tax payable and other current liabilities. are calculated as the annual repayment divided by four quarters for each calendar year. However, loan repayments are normally made bi-annually. Loan repayments will vary from year to year as the payment plan is based on a sculpted annuity. Net interest expense is here defined as interest income less interest expenses, excluding shareholder loan interest expenses, non-recurring fees and accretion expenses on asset retirement obligations. Normalised income tax payment is calculated as operating profit (EBIT) less normalised net interest expense multi- plied with the nominal tax rate of the jurisdiction where the profit is taxed. 38 First quarter 2021

Proportionate Financials In the first quarter of 2021 Scatec reports a proportionate The group’s segment financials are reported on a pro- operating profit of NOK 406 million compared with an portionate basis. The consolidated revenues and profits operating profit of NOK 444 million in the consolidated are mainly generated in the Power Production segment. financials. To arrive at the proportionate operating profit Activities in Services and Development & Construction from the consolidated operating profit the Group has; segment mainly reflect deliveries to other companies controlled by Scatec (with from 39% to 100% economic 1. added back to the proportionate statement of profit or interest), for which revenues and profits are eliminated in loss the internal gain on transactions between group the Consolidated Financial Statements. With proportionate companies with a negative amount of NOK 30 million 1), financials Scatec reports its share of revenues, expenses, profits and cash flows from all its subsidiaries without 2. removed the non-controlling interests share of the oper- eliminations based on Scatec’s economic interest in the ating profit of NOK 153 million to only leave the portion subsidiaries. The Group introduced Proportionate Financials corresponding to Scatec’s ownership share, as the Group is of the opinion that this method improves earnings visibility. The key differences between the propor- 3. replaced the consolidated net profit from joint venture tionate and the consolidated IFRS financials are that; companies of NOK 138 million with Scatec’s share of the Operating profit from the joint venture companies with • Internal gains are eliminated in the consolidated finan- NOK 191 million. cials but are retained in the proportionate financials. These internal gains primarily relate to gross profit on 4. added back operating profit for January from the D&C goods and services delivered to project companies SN Power entities, NOK 92 million. which are eliminated as a reduced group value of the power plant compared to the stand-alone book value. See Note 2 for further information on the reporting of pro- Similarly, the consolidated financials have lower power portionate financial figures, including reconciliation of the plant depreciation charges than the proportionate finan- proportionate financials against the consolidated financials. cials since the proportionate depreciations are based on power plant values without elimination of internal gain. A bridge from proportionate to consolidated key figures Internal gain eliminations also include profit on Services including APMs like gross interest bearing debt, net interest delivered to project companies. bearing debt and net-working capital is included on page 17.

• The consolidated financials are presented on a 100% basis, while the proportionate financials are presented based on Scatec’s ownership percentage/economic interest.

• In the consolidated financials joint venture companies (Brazil, Argentina, Phillipines, Uganda, Laos) are equity consolidated and are presented with Scatec’s share of the net profit on a single line in the statement of profit or loss. In the proportionate financials the joint venture companies are presented in the same way as other subsidiaries on a gross basis in each account in the statement of profit or loss.

1) Where NOK 0.3 million comprise Scatec’s share of gross profit on D&C contracts, NOK -34 million comprise increased depreciation charges from internal gains and NOK -4 million comprise other items. Scatec ASA 39

Reconciliation of Alternative Performance Measures (consolidated figures)

NOK million Q1 2021 Q1 2020 FY 2020

EBITDA Operating profit (EBIT) 444 328 1,292 Depreciation, amortisation and impairment 187 175 777 EBITDA 631 503 2,069 Total revenues and other income 831 625 2,754 EBITDA margin 76% 80% 75%

Gross profit Total revenues and other income 831 625 2,754 Cost of sales - - - Gross profit 831 625 2,754

Gross interest-bearing debt Non-recourse project financing 10,533 13,438 11,350 Corporate financing 7,114 746 748 Non-recourse project financing-current 1,880 912 913 Gross interest-bearing debt 19,527 15,096 13,011

Net interest-bearing debt Gross interest-bearing debt 19,527 15,096 13,011 Cash and cash equivalents 4,783 3,058 7,788 Net interest-bearing debt 14,744 12,038 5,223

Net working capital Trade and other receivables 691 687 623 Other current assets 895 1,120 663 Trade and other payables -748 -829 -760 Income tax payable -104 -78 -90 Other current liabilities -1,302 -1,087 -852 Non-recourse project financing-current -1,880 -912 -913 Net working capital -2,449 -1,100 -1,330

40 First quarter 2021

Break-down of proportionate cash flow to equity Q1 2021

Power Development & NOK million Production Services Construction Corporate Total

EBITDA 704 17 -60 -25 636 Net interest expenses -186 - -6 -69 -262 Normalised loan repayments -201 - - - -201 Proceeds from refinancing1) 397 - - - 397 Normalised income tax payment -33 -4 15 22 1 Cash flow to equity 681 14 -51 -72 571

1) Refer to Note 5 Cash and cash equivalents.

Q1 2020

Power Development & NOK million Production Services Construction Corporate Total

EBITDA 331 16 15 -16 346 Net interest expenses -124 - - -16 -139 Normalised loan repayments -88 . - - -88 Normalised income tax payment -15 -3 -2 8 -13 Cash flow to equity 105 13 13 -24 107

FY 2020

Power Development & NOK million Production Services Construction Corporate Total

EBITDA 1,404 82 -28 -153 1,306 Net interest expenses -542 1 1 -58 -598 Normalised loan repayments -382 - - - -382 Normalised income tax payment -53 -18 12 58 -2 Cash flow to equity 427 65 -15 -153 324 Scatec ASA 41

Other definitions

Backlog Recourse Group Project backlog is defined as projects with a secure off- Recourse Group means all entities in the Group, excluding take agreement assessed to have more than 90% probabil- power plant companies (each a recourse group company). ity of reaching financial close and subsequent realisation. Definition of project milestones Pipeline Commercial Operation Date (COD): A scheduled date Historically, about 50% of projects in pipeline have been when certain formal key milestones have been reached, realised. The pipeline projects are in different stages of typically including grid compliance, approval of metering development and maturity, but they are all typically in systems and technical approval of plant by independent markets with an established government framework for engineers. Production volumes have reached normalised renewables and for which project finance is available (from levels sold at the agreed off-taker agreement price. This commercial banks or multilateral development banks). milestone is regulated by the off-taker agreement with the The project sites and concessions have been secured and power off-taker. In the quarterly report grid connection is negotiations related power sales and other project imple- used as a synonym to COD. mentation agreements are in various stages of completion. Financial close (FC): The date on which all conditions Lost time injury (LTI) precedent for drawdown of debt funding has been An occurrence that results in a fatality, permanent disabil- achieved and equity funding has been subscribed for, ity or time lost from work of one day/shift or more. including execution of all project agreements. Notice to proceed for commencement of construction of the power Scatec’s economic interest plant will normally be given directly thereafter. Projects Scatec’s share of the total estimated economic return from in Scatec defined as “backlog” are classified as “under its subsidiaries. For projects in development and construc- construction” upon achievement of financial close. tion the economic interest is subject to change from the development of the financial model. Start of Production (SOP): The first date on which the power plant generates revenues through sale of power Cash in power plant companies in operation under the off-take agreement. Production volumes and/ Comprise restricted cash in proceed accounts, debt or the price of the power may be lower than when com- service reserve accounts, disbursements accounts, mercial operation date (COD) is reached. This milestone maintenance and insurance reserve accounts and similar. is regulated by the off-take agreement with the power These cash and cash equivalents are only available to the off-taker. This milestone may be reached prior to COD if Group through distribution as determined by shareholder the construction of a power plant is completed earlier than and non-recourse financing agreements. anticipated in the off-take agreement.

Cash in power plant companies under Take Over Date (TOD): The date on which the EPC development/construction contractor hands over the power plant to the power Comprise shareholder financing and draw down on term plant company. COD must have been reached, in addition loan facilities by power plant companies to settle out- to delivery of training and all technical documentation standing external EPC invoices. before TOD takes place. The responsibility for Operations & Maintenance (O&M) of the plant is handed over from the Project equity EPC contractor to the O&M contractor at the TOD. This Project equity comprise of equity and shareholder loans in milestone will normally occur shortly after the COD date. power power plant companies. Design and layout: Artbox AS, Print: CopyCat AS, Photos: Scatec www.scatec.com